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The Sunny Side of Energy
After the Israeli company SBY captured the largest segment of the israeli market in installation of 50KW capacity photovoltaic systems, it took the next step and moved to the “boot” of Italy. Now, in collaboration with Israeli entrepreneurs, it has set up huge solar electricity-producing fields in three large regions of central Italy. Lana Elner, SBY’s vice president for business development, now stationed in Europe, describes the investment opportunities
By Gil Ahital
It’s as clear as day that the most critical need, at present, is to develop global sources of green energy – cleantech. This refers to technologies, products and services which on one hand improve efficacy or productivity, while on the other hand lower costs, input, energy consumption, waste and pollution.
Tamir Kaplinsky, founder and CEO of SBY – Solar By Yourself Solutions, “saw the light” and understood the importance of “green” electric energy over two years ago. Today, SBY not only holds the largest market segment of installation of solar photovoltaic (PV) receptors in Israel, with 119 employees, but is also the leader in entering to foreign markets. The first country for SBY’s new venture is Italy, where it is now building large solar fields in three regions: Lazio, Marche and Molise.
Vice president for business development Lana Elner explains that SBY is applying in Italy all the insights and applications it has learned directly from its experience, including its latest and greatest success -- the largest solar project connected to the Israel Electric Corporation’s (IEC) conductors networks in the moshavim (villages) Tzofar and Paran in the middle of the Arava. This project, launched about two months ago, was carried out by SBY for IC Green Projects, an Israel Corporation subsidiary. The 40 photovoltaic systems were built on top of the chicken coops and together produce about 2MW of green electricity from solar energy. In practice, this represents two-thirds of the electrical consumption of the communities in the area.
A Firm Promise
The potential market for producing solar energy in the State of Israel is divided into three, explains Elner. The first consists of basic commercial systems of 50KW, which can be installed on rooftops of storerooms, poultry coops, cow barns and the like, of areas at least half a dunam in size. Of course, the rooftop must suit the installation requirements, and the property owners must have proven financing sources. Elner states that most of the activity is currently concentrated on this sector.
The second part are the medium-sized systems, with the central players being large business groups such as the Fishman Group, Magor Holdings and Ofer Bros. and other, who have large real estate holdings, such as shopping malls, packing houses and hangars and the like, with rooftops larger than half a dunam on which solar energy systems can be installed to produce from 1-5MW.
The third market segment consists of larger systems, “But we’re only at the beginning with this group,” Elner says almost apologetically, but mixed with a determined promise which is based on the company’s proven experience over the past two years. She is also willing to reveal the secret of SBY’s success: “Our success in the Israeli market is based on the understanding that a EPC [engineering, procurement and construction] company in the solar field must provide service and support to its clients in all spheres of activity that interface with setting up the solar installation – from locating the site, negotiating with owners, licensing the installation, supplying the equipment through to handing it over with a turnkey solution when it’s already connected to the national grid.”
The Unique Advantage
Sticking to these principles SBY has generated not only trust and customer satisfaction but also collaboration with manufacturers of the panels and transformers on a scale that is rare worldwide. The latter provide the company and its customers, unprecedented credit terms and delivery times, which facilitate a tremendous advantage in this unique marketplace. Now, SBY also offers opportunities for potential Israeli investors, including its loyal clients, of expanding their activities to Italy. For this purpose, SBY has established a branch in Italy. SBY employs an Israeli staff of General Manager, VP for business development, a technical manager, an electrical engineer, two project supervisors and one logistics manager. SBY’s Italian staff comprises of a business and PR consultant, an administrative director and a construction engineer.
“The overall services that we are currently offering in Italy,” Elner explains “will save the Israeli investor a great deal in terms of time resources, financing and project management by overcoming the language barrier and overcoming barriers of bureaucracy, reliability and scheduling in the Italian marketplace. In practice, SBY undertakes to provide site location and licensing services, initial due diligence (both technical and legal), and support through the processes of licensing, negotiations on acquiring license and land use agreements, procurement and delivery of equipment and, of course, setting up the installation, connecting it to the local grid (including inspection and safety supervision pursuant to the Italian law) and operation and maintenance services.”
And continuing in her assured, determined tone, Elner concludes, “We at SBY are confident that the guidelines we set out for our proposed business contracting will succeed in paving the way, for our customers, into the Italian solar energy market- all this, already by the first and second quarter of 2011. By working together, in the State of Israel and in Italy, we expect to achieve production of 65MW by the end of 2011.” |